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Project Stakeholder Management

Project Stakeholder Management

In this article, you will learn how to identify stakeholders, analyze their impact on the project, communicate strategies, and develop strategies for managing competing expectations. By successfully managing stakeholders, you will be able to keep Scope Creep under control, ensure that project requirements are aligned, understand your risk tolerance, and mitigate problems that would otherwise delay a project. All of this is done with the understanding that you are responsible for developing and controlling relationships with each and every individual that your project influences, whatever you do. 

In project management, a stakeholder management plan is a formal document outlining how stakeholders are involved in the project. Good stakeholder management is an important part of project planning and a key component for the success of a project. 

By thinking about when and how stakeholders are involved, project teams can maximize their positive impact on the project. A stakeholder is a person or group that has a vested interest in a project, such as employees, customers, suppliers, contractors, employee families, or other stakeholders. 

Examples of internal stakeholders include employees, customers, suppliers, contractors, employee families, and employee families. Identifying stakeholders and their needs is one of the most important aspects of stakeholder management for project teams. 

The difficult part is to reconcile all your needs, requirements, and goals and to keep them happy while at the same time implementing the project you have set out to achieve. In a successful project, the requirements, goals and happiness of the most important stakeholders should be a constant concern of the projects. This does not mean that stakeholders are always right, but the job of a project manager is sometimes to push back against stakeholders and rebalance their expectations. This must be agreed upon from the outset, not just as part of the overall project management. 

A project can only be successful if it achieves its goals and ideally exceeds the expectations of its project and its stakeholders, according to the project leader. 

To better understand what stakeholder project management is and what it is all about, read on to get an in-depth look at how it can be a key component for the success of a project as well as its long-term success.

However, before stakeholder management can take place, you need to know who your main stakeholders are. It is the responsibility of the project manager to manage all stakeholders in a project, not just one or two. After conducting a continuous stakeholder analysis, it is up to you to update three important types of documentation, namely the Power and Influence Grid mentioned above. 

This includes the continuous analysis and documentation of the changes resulting from the consideration of all stakeholders involved in the project, as well as the effects of the changes on the overall project. 

Performing ongoing stakeholder analyses is very beneficial because it enables the project manager and project team to deal effectively with and communicate with all projects. It will also ensure that the relations between the project participants, which were originally forged, are strengthened and improved to ensure the success of the project. This can be achieved by analyzing the relationship between stakeholders on the basis of their current needs as well as the impact of changes on the overall project. 

Stakeholder management involves improving communication between the management team and maintaining the relationship between stakeholders and the project team. When planning stakeholder management, most import inputs should be entered in the stakeholder register. 

Identify and analyze for each stakeholder the interest they have in the project and their ability to control it. Use this information to plan the best way to engage and engage stakeholders. Create a plan to determine how your project will interact with stakeholders and plan their participation. 

Technical knowledge of stakeholders can also be an important factor in advance planning, but there are other advantages as well. Once you have identified one of these as related to your project, you can start developing a stakeholder management strategy. 

This is the first step towards developing a strong stakeholder management plan and identifying stakeholders and their roles and impacts. Stakeholder analyses should be carried out to establish a comprehensive list of stakeholders who should have been involved in the project. The results of this analysis must be documented in a stakeholder register and should contain information about the stakeholders, their role and impact, as well as their financial and other information. 

Ongoing stakeholder identification: One of the main advantages of ongoing stakeholder identification activities is that they allow the project manager to focus on the relationships between the key stakeholders in a project. Project managers should consider the importance of understanding the identities of individuals, groups, and organizations affected by the outcome of a project and how they can be influenced or influenced by a project. By implementing OngosoingStakeholder Identification, it is essential that the Stakeholder Register for Project Managers is updated with changes in how stakeholders have been or could be influenced by projects, as well as information about their financial and other information. 

Leadership And Communication Skills For Project Managers

If one of the best qualities of a good leader is that he knows how to do things, then a strong quality of a project manager is the fact that he knows how to get people to do things. But how does he forget things people do and what does he do about it? 

Therefore, the development of leadership skills to improve team performance in project management can be of great importance. When it comes to project management and leadership, it comes down to how best to manage people and get them to achieve common goals. While not all project managers may be effective leaders, one thing is certain: Successful project managers use their leadership skills to develop leadership skills that complement their team’s performance. 

We will look closely at each team’s strengths and weaknesses and assess their leadership, communication, and performance. 

Based on this assessment, you can select one of CEG’s management consultants and work with them to develop your project manager’s leadership and communication skills for project management. A 2016 RICS Cobra research paper examines which communication skills are most valued by project managers in the construction industry. Click here to change your career in our Project Management course or call us at 1-888-745-5555 for more information about our online training. 

Leadership is not a communication skill per se, but we see it as a skill necessary to communicate effectively with your team. 

Leadership means being able to show authority, and it must be coupled with the ability to communicate and lead by example. If a project manager cannot delegate responsibility for project management to other project managers in the team, he can delegate tasks to members of his team to support them so that they can oversee the project as needed. In order to take responsibility for the existing projects, the project leader must communicate effectively with his team. The project manager must show independent decision-making and skills and pass them on to his team and present them positively. 

It is important to note that while a good speaker is important, interpersonal communication skills go far beyond words. It is about hearing and understanding the voices of others and communicating with them. A good leader must behave with good communication skills in order to be able to pass on information to higher levels while passing critical project updates to management. 

One of the qualities of a good manager is that he or she must be a “good communicator” so that he or she can connect with people at all levels. 

Effective project management means being able to motivate and drive the team to top performance in order to achieve its goals. The Project Leader must clearly explain the importance of the project, its goals, and the role of its team members in this process. 

As a project manager, he is responsible for bringing the project to a successful conclusion and leading the team to achieve its goals. Effective project managers also need decision-making competence, because there will always be decisions that have to be implemented. 

Remember that project management is done in different styles, each of which suits your personality. If you are not able to articulate what you have to do for your team, you will never be an effective leader. 

You need to communicate with your team and have a good relationship with everyone connected to the project, not just the customer. This means that you need to communicate your ideas to your customers as soon as possible, which is crucial for success. Good communication is a skill in project management that enables you to have a solid relationship between your teams and customers. 

The more solid the relationship, the more likely it is that the project will be successfully completed, and the better the chances of successfully completing it. 

The impact of a project’s success or failure can affect your reputation and career. The project leader rarely reports directly to you, but often communicates with his team members as you would with any other task. This allows project managers and team members to deviate slightly from the original direction of your project, resulting in project failure. 

Therefore, the project leader creates a positive relationship with his team members and contributes to the overall success of the organization. Therefore, project managers create and support project success based on their communication skills.

Although project managers require many skills similar to those of operations managers, a successful project manager requires additional knowledge, skills, and abilities because he or she works in a more time-consuming and goal-oriented environment. To find out what leadership, technical, general, and entrepreneurial skills project leaders need to be effective, PM Solutions surveyed more than 1,000 project management experts in the US to determine their skills. Albert Einsiedel1 defined the five characteristics of an effective project leader and discussed it with the leaders of sensitive projects. 

Agile for Project Management

Many agile project management methods have been developed with software in mind, and many of them have developed a set of values and principles that would be useful to any team wondering how to become agile. 

If you are just looking for a definition for agile project management as it is, here is a useful definition for agile project management. Agile Project Management (APM) is steeped in a set of principles for guiding the project process, from the principles of continuous testing and responsiveness to change to the values of collaboration, collaboration, and accountability. It is a collaborative, iterative project management approach that includes continuous testing, responsiveness and change. 

Agile is steeped in a project management methodology that uses short development cycles, known as sprints, to focus on the continuous improvement and development of products and services. In agile software development, for example, a single development cycle refers to an iteration, and an agile project can be completed in a short time, usually within a few weeks or months. 

William Royce, who published an essay on the development of large software systems, discussed agile as an incremental software development method as early as 1957. Later, in 2001, 17 software developers published the first book Agile Software Development, a guide to using agile development methods for large software projects. The developers met to discuss the need for a lightweight design method based on their shared experience. 

The modern agile approach was first introduced in 1999 when a group of software developers met to discuss alternative project management methods. In addition to the twelve principles of agile software, this philosophy became the basis for the development of a new type of project management and the basis of modern agile philosophy

Agile is a generic term used to identify the various models used for agile development. Unlike the simple linear waterfall model, agile projects consist of a number of small cycles or sprints. 

Splitting the work into smaller chunks and working iteratively to improve the product or service enables agile teams to improve their processes, isolate problems, and achieve specific goals over time – isolated collaborative events, prioritized product residues, or a combination of the two. 

At the highest level, Agile for Project Management is a style of project management that focuses on providing essential quality products. It uses crowding as a framework, eliminates wasted time and tasks, and helps companies strike the right balance between minimizing waste, cutting costs, and maintaining product quality. 

At its core, Agile’s purpose is to focus on people, communication, and product flexibility, but also on the quality of the product itself. 

Agile project management was originally developed for software teams with complex specifications who wanted to move quickly and be the first to deliver a high-quality product. There is some free, open-source, cross-platform software development platform used by leading organizations in software engineering, product management, and business development. 

It’s packed with all the features your team might need to plan, collaborate, and organize functions. Your team can effortlessly start discussions, exchange ideas, move forward with collaborative tools, and move through the process quickly. 

As you grow your team and business, this software brings all of these benefits under one roof. Agile project management may seem like just another trendy project – management methodology – but it has proved to be more than a flash in the pan. It combines the best of both worlds: high-quality, flexible, and flexible software and a cost-effective approach to project planning and management. His methods are based on the same principles of cooperation, communication, cooperation, and cooperation as the traditional methods of the past. 

Agile project management enables teams of all kinds to work together, enabling them to adapt to the changing needs of their projects and deliver faster results. The agile project management model consists of independent, autonomous scrum teams that manage their own projects and have full control over their development and implementation. 

For teams that want to integrate more agile project management methods into their workflows, here are a few terms they need to define. Behavior-driven development (BDD) is an agile software development technology that promotes the application of agile principles and practices in the design, development, and implementation of the software. BDD focuses on achieving a clear understanding of the desired software behavior through discussions with stakeholders. 

Agile offers a managed approach to software development without the traditional procedural emphasis on compartmentalization and focuses on iterating product requirements, promoting continuous improvements, and responding quickly to changing requirements. 

Scrum, a subset of the Agile Approach, is a set of principles and tools that enable rapid and responsive decision making. Scrum is an agile method designed to guide teams through the iterative and step-by-step delivery of products. 

Critical path method

Critical path method

critical path method

critical path method

Critical Path : is a combination of activities that, if any are delayed, will delay the project’s finish date.

Purpose of critical path method:

1. To calculate the project’s finish date.

2. To identify how much individual activities in schedule can slip with delaying project

3. To identify the activities with the highest risk that cannot slip without changing the project finish date.

Float Calculation using CPM

● Float is the amount of time an activity can be delayed without delaying the project end date.

● Float is always Zero on Critical Path activities.

● Critical Path is longest path of network diagram.

a

Each activity have same box

ES : Early Start

EF : Early Finish

LS: Late Start

LF : Late Finish

Float = LS-ES or LF-EF

Float Calculation

Late Start(LS) – Early Start(ES)

OR

Late Finish(LF) – Early Finish (EF)

Example

You are the project manager of project at SkillsMag and following activities are identified along with the activity effort.

Project A
Activity Preceding  Activity Duration (Wks)
Start None 0
A Start 1
B Start 3
C Start 5
D A 9
E B,C 2
F C 3
G D 4
H E 8
I F 2
End G,H,I 0

First  prepare schedule network Diagram

network diagram

network diagram

Step 2:

Calculate the ES and EF of each activity using forward pass technique.

Remember the following formulas for calculation.

Early Start (ES) = Early Finish(EF) of Predecessor activity. If no predecessor activity exists then 0.

Early Finish (EF) = Early Start (ES) + Activity Duration

Activity E is highlighted as it has 2 predecessor activities. we take higher one.

network diagram

network diagram

Step 3:

Under this technique, we will start calculating the value from last activities on the path i.e. from G,H and I.

Thumb Rule : Take highest EF.

Our case we have EF 15 is highest for activity H.

The formula for LS(Late start) is

Late Start (LS) = Late Finish – Activity Duration

Activity c has 2 successor activity,take lowest one.

network diagram

network diagram

Step 4 : Float calculation

float

float

 

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Project Integration management

Project Integration management

Project integration management

Project integration management

Project Integration management is main responsibility of project manager. Here project manager has to do high level of project work and balancing between different processes.

[box] As per PMBOK®

“Project Integration management includes the process and activities need to be identify, define, combine, unify and coordinate the various process and project management activities within the project management process groups.”[/box]

Figure given Below shows project integration management processes and their respective process groups

Project integration management Process group (done during )
Develop project charter Initiating
Develop project management plan Planning
Direct &manage project work Executing
Monitor  & control project work Monitoring and controlling
Perform integration change control Monitoring and controlling
Close project or phase Closing

 

Let’s have better understanding for each process of integration management.

Develop Project Charter:

This is very first part of integration management.

Develop Project Charter
  Inputs

1.       Project Statement of work

2.       Business case

3.       Agreements

4.       Enterprise environmental factors

5.       Organizational process assets

 Tool  and Techniques

1.   Expert judgement

2.   facilitation techniques

Outputs

1.       Project charter

 

 

[box]As per PMBOK®

“Develop project Charter is the process of developing a document that formally authorize a project or a phase and documenting initial requirement that satisfy the stakeholder need and expectation. ”[/box]

Project charter should be developed by project sponsor, Customer, PMO or they can delegate duty to Project manager.

Project Manager is assigned in this process.

It formally authorizes the project.

Now let’s have a look on input, tool & technique and outputs of project charter

Inputs

Project statement of work:

[box]As per PMBOK®

“The statement of work (SOW) is a narrative description of product or a services to be delivered by project.” [/box]

The project statement of work contains

  • Business need
  • Product description
  • Strategic plan

Business case:

Business case provides necessary information from business point of view whether project is feasible or not.

Business case is created based on one of following points

  1. Market demand
  2. Organizational need
  3. Customer request
  4. Technological advance
  5. Legal requirement
  6. Ecological impact
  7. Social need

Agreements:

When working for external customer the contract is used as an input.

Enterprise environmental factors:

Enterprise environmental factors that can affect the development of project charter.That can be

  1. Government & industry standards
  2. Organizational infrastructure
  3. Marketplace condition
  4. Environment of project

Organization Process assets:

The organizational process assets that can effect development of project charter process may contain Organization standard process, Templates, Historical information and lesson learned and knowledge base.

Tool & Techniques

  1. Expert judgement

Expert judgement technique is used in every integration management process.

In this judgement is provided based on expertise by expert person of their fields.

They can be individuals, subject matter expert (SME), Consultant, stakeholder or group(s).

 

  1. Facilitation techniques

Brainstorming, managing meetings and keeping them on track, resolving conflict, and resolving problems are part of facilitation techniques. These techniques are used by facilitator.

Outputs

  1. Project Charter

Project Charter is final outcome of develop project process. It provides summary of project.

Project Charter contains following things

  1. Project proposal or justification
  2. Summary budget
  3. Summary milestone
  4. High level or requirements
  5. High level of project risks
  6. Measurable success criteria
  7. Assigned project manager.

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Project management basics part 2

Project management basics part 2

Project Management Basics

Project Management Basics

In continues series of project management basics, in this article going to learn about different type or organizations and various project management roles. To understand project role first we need to know well about different type of organizations.

Different kind of organization types

Functional organization

In this type of organization project is performed under functional department. This kind of organization structure is very common .Here project team member are not dedicated to project they are loaned from functional departments.

Pro :

These organization have experts by functions.

Easy resources scheduling.

Cons:

Project manager having very less authority towards a project.

Projects have lower priority.

Matrix organization

It’s a hybrid type of organization in that project manager share responsibility with functional manager for project resources, priorities.

This type of organization can be divided in weak matrix, balanced matrix and strong matrix organization

Pro :

They have well managed  project as well as experts and specialists.

Cons:

Resources have to report to both project and functional manager.

Higher chances of conflicts between Project Manager and Functional manager.

 

Projectizied organization

This kind of organization is separate from functional department. The organization is designed according to the project not based on functional department.

Pro:

Project manager is fully responsible for project and its outcome.

Team is highly committed to project.

Easy and smooth communication.

Cons:

Project team  belongs to project not to functional department.

There is no home for team members once project is over.

Note:  for more detail about organization types and their comparison see my upcoming articles.

Now let’s have a look at different project management roles. It is very important to know difference between various project roles for PMP,CAPM and other project management  exam point of view. Additionally it also helps you to work more efficiently in organization if you understands different roles and their responsibilities.

Project Manager

He is the person who is completely responsible for all project activities and results of project. They found in matrix and projectized organization. Project manager should not escalate any project related issue or problem to someone else.

Project Coordinator

Weak matrix or functional organization does not have role for project manager. They have role called project coordinator.  This role have less authority then project manager. This role is not allowed to make budget decision but have little authority to reassign resources.

Project Expeditor

This is weakest role in project management. Project expeditor only make sure that things complete on time.  This role has no formal authority. This kind of role is found in functional organization.

Stakeholder

Person who is involved or affected by project in either positively or negatively know as a stakeholder.

Sponsor

The person who is paying all expenses of project. Sponsor may be from organization itself (internal) or external to the organization. Sponsor and customer may or may not be same.

Program manager

Program manager is responsible for program. Program manager manages project and programs at higher level than project manager.

Functional manager

Functional manager is also known as a line manager. He actually manages group or department that actually perform a service or create a product.

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Project management basics

Project management basics

Project Management basics

Project Management basics

 

To learn more about project management we have to get familiar with some basics of project management. Here we are going to learn few project management concepts.Even these terms are very easy to learn but they have important place in project management learning as well as PMI’s project management professional (PMP) and Certified associate in project management (CAPM).

  1. What is process?

A set of action to achieve specific end result or output for the project.

PMP and CAPM exam points of view process is group of input, tools & technique and outputs.

Output of one process may input of another process.

Process can be performed more than one time on the project.

  1. What is Operations?

Operation is ongoing process and always gives same outcome. They are not part of Project but can be part of a program.

Example of operation is, School management is daily managing students for day to day routine.

  1. What is Project?

Project is always temporary.

It has predefined start and end date.

It has a set of operation to achieve a single goal.

At the end it creates unique product, service or result.

[box type=”shadow”]

Examples of Project:

A new Venture. (Goal: Product)

Market research (Goal: Result)

Process improvement (Goa: Service)

[/box]

 

  1. What is Program?

Program is group of related projects and sub-program. Program may also contain operations.

  1. What is Portfolio?

Portfolio is group of related programs and projects. It should be aligned to meet business objectives.

  1. What is progressive elaboration?

The iterative process of getting detail about project as we progress. At the start of project we know very little about project.

  1. What is project Management?

Project Management is combination of knowledge, skills, tools and techniques to full fill project requirement.

  1. What is baseline?

Simply we can say it is original plan or any approved changes in project plan from formal change control procedures.

  1. What is lesson Learned?

The experience gained during a project in each phase of project.

It is an organizational asset.

It is used as an input in many project planning processes.

In this we focus on what was happen instead of what should happen and how we can handle this kind of situation in current project.

  1. What is historical information?

All the information and data from previous project is known as a historical information. It is part of organizational process asset.

project management basics Part -2 

Project selection methods

Project selection methods

Project selection methodsThere are various project selection methods. They are divided in two categories

  1. Benefit measurement method
    • Murder board
    • Scoring model
    • Peer review
    • Economic model
  2. Constrained optimization method (Mathematical )
  • Linear programming
  • Dynamic programming
  • Integer programming
  • Multi-objective programming

Let’s have some introduction of  different project selection methods.

Benefit cost ration (BCR):

It is a ratio of benefit over cost. If the Value of benefit cost ration (BCR) is grater then 1 (one) it is good.

Example 1: If project one is having BCR ratio of 1.9 and project two is having BCR ration of 2.2.Which project you will you choose?

Solution:

Project two as it has a greater BCR Value than project one.

Example 2:

If you expect cost of project is $90,000 and you expect to gain $1,80,000 from complete project. Calculate BCR for that.

Solution:

Benefit cost ratio (BCR): benefit over cost= benefit/cost

Here benefit is $1,80,000 and cost is $90,000

So BCR= 180000/90000=2

 

Internal rate of return (IRR) :

It means project’s return as an interest rate. Bigger internal rate of return (IRR) is always better.

Example: You have two projects, Project one has IRR of 10% and project two has IRR or 20%. Which one will you choose?

Solutions:

Project two as it has bigger IRR(20%) than project one (10%).

 

Present value (PV) & Net Present value (NPV) :

present value means current value today of future cash flow. You can calculate with the help of

PV=FV/ (1+r) n

Here

PV= Present value

FV= future value

R= rate of return

N=number of time period.

Bigger PV or NPV is better.

Example: You have two projects. Project one has NPV of $90,000 and project two has NPV of $60,000. Which one you are going to choose from those?

Solution:

Project one as it has greater NPV.

Opportunity cost:

It means selecting one project over another by giving up opportunity. Smaller opportunity cost is better for project selection.

Example:

If you have two projects project one has NPV of $38000 and project two has NPV of $90000.What is opportunity cost for selecting project two.

Solution: $38000 is opportunity cost.

Payback period:

It measure time that how long it will take to get an investment back from project.

Example: You have two projects project one have payback period of 3 months and project two has payback period of 6 months. Which one you choose?

Solution: It is project one as it has less payback period.

Return on investment (ROI):

It shows how much percentage you make by investing in project. Bigger ROI is always better.

Returned on individual capital (ROIC):

It shows how money is used in invested project. We display this as a percentage.

ROIC= Net income/total investment

Economic value added (EVA):

It represent how much value a project has truly created for its stakeholders. In other words we can say whether project returns to the company more value than its cost.

project management plan

project management plan

 

Project management plan is master plan for project. It is developed once project charter is approved.

[box] “Develop project management plan is process of documenting the actions necessary to define, prepare, integrate and coordinate all subsidiary plans. The project management plan define how the project is executed, monitored & controlled and closed.”[/box]

It integrates all the knowledge area. It also include baseline of project. Project baseline once defined can only be change through perform integrated change control process.

To develop successful project plan one should have following skills.

  • Negotiation
  • Leadership
  • Active listing
  • Brainstorming
  • Communication skills
  • Conflict resolution

 

Develop project Management plan
Inputs

·         Project Charter

·         Output from planning process

·         Enterprise environment factor

·         Organizational process assets

Tool & Techniques

·         Expert judgement

·         Facilitation techniques

Output

·         Project Management plan

 

Inputs

 

Project Charter: Please click here to see more about project charter.

Output from planning process:

Information from other planning processes help to develop project  plan.

Table below shows various planning process

Scope management plan
Requirement management plan
Project scope statement
Scope baseline
Schedule management plan
Schedule baseline
Cost management plan
Cost performance baseline
Quality management plan
Process improvement plan
Human resource plan
Communication management plan
Risk management plan
Procurement management plan
Stakeholder management plan

 

Enterprise environment factors: Please click here to see more about Enterprise environment factors.

Organizational process assets: Please click here to see more about Organizational process assets.

 

Tools and Technique:

 

Expert judgement

Expert judgement technique is used in every integration management process. In this judgement provided based on expertise by expert person of their fields. They can be individuals, subject matter expert (SME), Consultant, stakeholder or group(s).

 

Facilitation techniques

Brainstorming, managing meetings and keeping them on track, resolving conflict, and resolving problems are part of facilitation techniques. These techniques are used by facilitator.

 

Output:

Project management plan is main output of this process. It is a formal approved document. Table above shows components of that.

pmp formulas

pmp formulas

pmp formulas

pmp formulas

 

Here is list for pmp formulas.

PERT = (P+4M+O)/6

P = Pessimistic

M= Most Likely

O= Optimistic

Standard deviation = (P-O)/6
Variance = {(P-O)}/6
Project PERT = Sum of PERT value of each task

 

Project Variance = Sum of variance of each task
Normal distribution (sigma)

6 sigma = 99.99%

3 sigma = 99.73%

2 sigma = 95.46%

1 sigma = 68.26%

No of communication channel = N*(N-1)/2

Here N is number of member in project team

If team have 10 member then =10 *(10-1)/2 =>10*9/2=>45 Communication channel

Float = LF – EF = LS- ES

LF = Late finish

EF = Early finish

LS = Late start

ES = Early start

Float value is 0(zero) on critical path.

Schedule variance (SV) = EV-PV     (Positive variance is good)

EV = Earned value     PV=Planned value

Cost Variance (CV) = EV- AC    (Positive variance is good

EV = Earned value     AC= Actual cost

Cost performance index (CPI) = EV/AC

(>1 are good)

Schedule performance index (SPI) = EV/PV

(>1 are good)

Estimate at complication  (EAC) =

1.       Estimating assumptions are not  valid = AC+ETC

2.       Current variance are atypical = AC+BAC-EV

3.       Current variance are Typical =AC+(BAC-EV)/CPI

4.       Variance to continue at current rate = BAC/CPI

5.       EAC = AC + [(BAC -EV)/(CPI*SPI)]

Estimate to complete (ETC)  = EAC-AC
Variance at complete (VAC) = BAC-EAC
TCPI =

1.       TO Complete performance index based on BAC= (BAC-EV)/(BAC-AC)

2.       To complete performance index based on EAC= (BAC-EV)/(EAC-AC)

Percentage complete of budget=(EV/BAC)* 100
Benefit Cost Ratio (BCR) = Payback/project cost

Bigger is better

Net present value (NPV) bigger is better

Internal Rate of Return (IRR) bigger is better

Present Value PV=  FV / ((1 + r)^term)
Expected Monetary Value = Probability * Impact
Procurement related

Actual cost (AF) ={(TC-AC)*SSR}+TF

TC = target cost

AC = actual cost

SSR= Sellers share ration

TF= target fee

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